Algotoria has made two updates to the strategies that trade Bitcoin, Ethereum and Solana. Their purpose is to raise the quality of entries and to remove the noise that sideways markets create for trend-following systems.
Why sideways markets need a specific answer
Trend-following strategies earn most of their return in sustained directional moves. In a market that reverses direction often, with moves too small to carry a trend, the same systems enter and exit repeatedly and each trade costs a little. The result is a series of small losses that wears down accumulated gains.
This is the environment in which the strategies are weakest, and the frequently asked questions say so plainly. The two filters address it at the level of the individual trade, so that the systems remain rule-based and do not depend on a forecast of when the market will move.
The trend direction filter
Under the trend direction filter, a position is taken only when it is aligned with an independent trend signal. When the market has no clear direction, the systems stop trading against it.
The effect is a smaller number of entries, with each one backed by a stronger directional signal. Fewer low-probability setups also means fewer of the round trips that erode capital in a flat market.
The profit fixer
The profit fixer is a dynamic cool-off rule. Once the return targeted for a defined period has been reached, trading pauses.
The aim is to prevent give-back. Gains made early in a period are not exposed to the choppy conditions that often follow a strong move.
What the filters trade off
Limiting activity in flat markets produces a smoother equity curve and smaller losses in sideways phases. The cost is some upside: a filter that skips low-probability setups will sometimes skip a trade that would have worked, and a cool-off can pause trading ahead of a move that would have added to the gain.
Algotoria accepts a marginal loss of upside in return for stability in the unfavourable phase. The filters reduce the weakness of trend-following in flat markets. They do not remove it, and the strategies can still draw down. The Risk Disclosure Notice describes the risks in full.